Fidelity Now Offers Bitcoin Trading: Buy and Sell BTC Instantly!
• Fidelity Investments has launched its crypto trading platform, Fidelity Digital Assets.
• Customers can buy and sell bitcoin using the platform, but cannot transfer it to a self-custody wallet.
• Critics have raised concerns about the security of trusting large institutions such as Fidelity.
Fidelity Investments Launches Crypto Platform
Fidelity Investments has announced the launch of its cryptocurrency platform, Fidelity Digital Assets. The platform is now available for public use and enables customers to buy and sell bitcoin. However, customers cannot transfer the funds to a self-custody wallet where they control their own private keys.
When trading through Fidelity Digital Assets, customers will not be charged any fees but rather a 1% spread on each transaction. This spread is defined as “the difference between the price at which you buy or sell crypto in your Fidelity Crypto account and the price at which Fidelity Digital Assets fills your order.” The customer’s execution price will show this spread.
In order to utilize the services offered by Fidelity Digital Assets, users must be U.S citizens over 18 years old residing in eligible states.
Criticisms of Trusting Large Institutions
The launch of this service has been met with criticism from some senators who wrote in a letter that “Fidelity Investments has opted to expand beyond traditional finance and delve into the highly unstable and increasingly risky digital asset market.” They also raised concerns about trusting large institutions such as Fidelity with one’s digital assets, emphasizing that true sovereignty when using cryptocurrency can only come from holding one’s own private keys.
Overall, while many may welcome the introduction of such services from trusted financial firms like Fidence Investments, extra caution should still be taken when entrusting third-parties with handling digital assets due to potential security risks associated with them.